The Inland Revenue is demanding HK$400,000 in profits tax from the Hong Kong Journalists Association (HKJA), the press group said on Thursday, as part of a review of its 2017-2018 accounts.
“After preliminary communication, the IRD requested that HKJA submit detailed accounting records for several years, as well as profits tax returns for the six years between 2017/18 and 2022/23,” the HKJA said in a statement, adding that it had received a bill of around HK$400,000 for 2017/2018.
It said the Inland Revenue warned them that more taxes may be collected for other years, and that the group has a month to raise an objection.
The association said that, over the years, its operational funding came mostly from public and private organisations which provided sponsorship at fundraising dinners: “The IRD explained that the amount of payable taxes it has asked for is assessed based on the size of HKJA’s bank deposits. We are perplexed by this. The HKJA will file an objection against this assessment for 2017 and has engaged professionals for assistance.”
It added that it has always provided audits in a timely manner, has always complied with the Trade Unions Ordinance, and will cooperate with the authorities.
Press freedom
The HKJA has increasingly been a target of government officials and pro-Beijing media outlets in recent years. State-backed Wen Wei Po in 2021 labelled the association an “anti-government political organisation” which defends “fake news.” There is no evidence the group has defended misinformation.
Secretary for Security Chris Tang also accused the group at the time of “breaching professional ethics” by backing the idea that “everyone is a journalist.” The HKJA said his claims were “factually wrong.”
Hong Kong has plummeted in international press freedom indices since the onset of the security law. Watchdogs cite the arrest of journalists, raids on newsrooms and the closure of around 10 media outlets including Apple Daily, Stand News and Citizen News. Over 1,000 journalists have lost their jobs, whilst many have emigrated. Meanwhile, the city’s government-funded broadcaster RTHK has adopted new editorial guidelines, purged its archives and axed news and satirical shows.
See also: Explainer: Hong Kong’s press freedom under the national security law
In 2022, Chief Executive John Lee said press freedom was “in the pocket” of Hongkongers but “nobody is above the law.” Although he has told the press to “tell a good Hong Kong story,” government departments have been reluctant to respond to story pitches.
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